September 21, 2021

Wired Rec

Business and General

Vehicle Insurance

Over 40 Ways to Reduce Your Vehicle Insurance Costs

There are articles titled “7 ways to save on auto insurance” or “5 Tips to lower your car insurance costs” etc, but wouldn’t it be great to have all those savings tricks and discounts in one place? Below you will find such a list for auto insurance. This list is a comprehensive overview of all the opportunities to save on auto insurance in Canada, and is compiled based on the results of various discussions with insurance brokers and through analysis of various insurance offers.

1. Shop: Search, Compare, and switch insurance companies. There are many insurance providers and their offers for the same policy can be very different, so use some online tools and talk to several brokers as each will cover a number of insurance companies.

2. Bundles: Do you need Home and Vehicle Insurance? Most companies will offer a discount if you combine them.

3. Professional Membership: Are you a member of a professional organization (for example, Canadian Certified Management Accountants or Air Canada Pilots Association)? Then some insurance companies offer discounts.

4. Students: Being a student yourself can result in student discounts.

5. Alumni: Graduates from certain universities in Canada (eg University of Toronto, McGill University) may be eligible for discounts at certain Insurance providers.

6. Employees/Union Members: Some companies offer discounts to union members.

7. Seniors: Many companies offer special rates for seniors.

8. Direct insurers: Do you always deal with insurance brokers/agents? Getting a policy from an insurance company directly (i.e. an insurance company working through a call center or online) can often be cheaper (but not always) because they don’t pay an agent/broker commission for every policy sold.

9. Annual payments vs. monthly: Compared to monthly payments, annual payments save the insurer’s administrative costs (e.g. sending invoices) and therefore they provide you with lower premiums.

10. Loyalty: Staying with one insurance company longer can sometimes result in long-term policyholder discounts.

11. Annual Review: Review your policies and coverage annually, as new discounts may apply to your new living situation if they have changed.

12. Welcome discount: Some insurance companies offer what is called a welcome discount.

13. Benchmark your costs: Knowing how much other consumers similar to you pay for their insurance can help you identify the most cost-friendly insurance provider.

14. Car Insurance Deductibles: Increase your auto insurance deductible if you believe you can afford the higher payment for damages in the event of an accident. It is perfect for more experienced car drivers.

15. Become a second driver: Drive only occasionally? Be a second mover instead of a prime mover

16. Minimum coverage: Driving an old car without good grades? Get the minimum protection required by law (mainly liability) without collision damage (you are still covered if you damage someone’s car but damage to your car will not be covered)

17. Minimal Coverage: Drive an old, cheap car? Then only get the minimum coverage package required by law (mainly liability) without collision damage coverage (does not cover damage costs for your vehicle)

18. Make the Most of Your Credit Card: Check if your credit card insurance covers rental car coverage. Paying with a card that has insurance for car rental coverage can save you about $20 per day in Collision Damage Waiver fees.

19. Leverage car rental coverage: If you frequently rent cars and have a car insurance policy, you should check whether your own car insurance policy actually covers rental cars. If so, you can save all Collision Damage Waiver fees for the rental vehicle.

20. Rental car drivers: If your existing auto insurance policy doesn’t cover your rental car, you can often add it as a driver (policy extension) for $20-30 dollars a year. Compared to the $20/day you’d pay when you rent a car, that’s not a bad deal!

21. Location, location, location: Car insurance costs differ from province to province (e.g. moving from Ontario to Quebec will definitely cut your insurance costs in half). If you are moving within a province, you should check for any changes in car insurance costs, and ideally you should move to a place where the costs are lower (e.g. Burlington, Ontario has one of the highest auto insurance rates in Ontario)

22. CAA member: CAA member: Are you a CAA member? Some insurance providers will reward you with lower insurance premiums, including, of course, CAA.

23. Dashboard camera: Get a dashboard camera for your vehicle. Although installing a dashboard camera does not result in immediate savings (insurance companies do not offer any insurance discounts associated with a dashboard camera) it can prove your innocence in the event of an accident. This results in you avoiding unfair premium increases.

24. Driving Course: Successful completion of a driving course is sometimes recognized by some insurance providers and can help you reduce your premiums.

25. Improve your driving record: Do you have a bad driving record? Every three years previously issued tickets are removed from your insurance history and your insurance premiums may drop.

26. Accidents Due to Mistakes: Have you had some accidents in the past in which you were at fault? With a little patience (six years without an accident), your risk profile will improve so you can once again enjoy reasonable insurance premium rates.

27. Age: Senior drivers enjoy lower auto insurance premiums. Thus in a few years your premiums can go down.

28. Car Make and Model: Choose your car wisely, as some car models are more prone to theft or even have a history of riskier drivers (e.g. Toyota Camry, Acura MDX, Toyota RAV4, and Honda Civic are usually quite expensive to insure)

29. Good Student: Yes, having good grades can have many positive impacts, and even on your car insurance rates! For example. one insurance company awards students who are less than 25 years old and have good grades (B grade average or higher) at a discount of up to 25%.

30. Multiple car packages: Package multiple cars in one policy and your rates can go down

31. Anti-theft system: Installing a certified anti-theft system in your car results in a lower risk of theft and thus can lead to insurance discounts.

32. Winter Tires: Having winter tires is important for safe driving during winter, but it can also help reduce your insurance premium.

33. Repair costs: Choose a car that costs less to repair in the event of a breakdown. Repair costs for certain cars (eg Mini Cooper or BMW) are higher than others (eg Ford Focus) and insurance providers know that.

34. Claim History: Keeping a clean claim history is sometimes more financially feasible than filing a claim for minor damage repairs that could result in increased premiums. Contacting your insurance provider/broker can help you figure out what makes sense.

35. Married: In most provinces, your marital status affects your insurance premiums (except in Nova Scotia)

36. Close proximity to work: Finding a home close to your workplace reduces the distance you need to drive daily to work and thus results in lower insurance premiums.

38. Drop the windshield: For cars with cheap windshields, it is more economical to drop the windshield because combined with the reduction you have to pay in the event of an accident, you will end up paying more. It’s up to you to calculate.

39. Retirement Discounts: Some insurance companies will offer different pension discounts for drivers.

40. Disability: Some companies offer discounts for people with disabilities.

41. Hybrid vehicles: Many companies award driving a hybrid vehicle at a lower insurance premium.

42. Private Garage: Parking your car in a secure location (eg a private or secure garage) usually results in lower insurance premiums with car insurance providers.